Yes, unfortunately there is countries, that blocks all access to certain sites, e.g. sites with illegal content.

With regard to the "Why create a proxy?"-question. I agree with you, WSecure.

Personally I would love to just say "That's enough!" and just block all Google's websites, because I find them not respecting my privacy, as much as some alternative services does.

But that would just make too many, websites not work! This is because many webmasters makes use of Google's services on non-Google websites.

E.g. embedding Google Maps on a "Locate your nearest local Wall-Mart"-page or hosting their videos on YouTube (which is owned by Google), instead of hosting them themself, or hosting their RSS feeds on FeedBurner (a Google-service)... the list goes on and on... but I'm sure you get the point! : )